Nigeria's Internet Usage Surges 4.2% Despite 50% Tariff Hike

Nigeria’s internet usage has reached an unprecedented milestone, surging to 1,043,431.98 terabytes (TB) in May 2025, surpassing the previous record of 1,000,930.60 TB set in January. This remarkable growth comes despite a 50% tariff hike on voice, data, and SMS services approved by the National Communication Commission (NCC) in January 2025, highlighting the country’s deepening reliance on digital connectivity amid economic challenges.

The NCC’s approval of the tariff increase, the first in over a decade, raised the floor price for calls from ₦6.40 to ₦9.60 per minute, SMS from ₦4 to ₦6, and 1 GB of data from ₦287.50 to ₦431.25. The hike, driven by telecom operators’ demands to offset rising operational costs due to inflation, currency devaluation, and energy expenses, initially sparked a decline in internet usage. Data from the NCC shows consumption dropped sharply from January’s record 1 million TB to 893,054.80 TB in February, with a partial recovery to 995,876.10 TB in March and 983,283.43 TB in April. However, May’s figures indicate a robust rebound, signalling that Nigerians are adapting to the new price.

The tariff hike was met with public outcry, as Nigeria grapples with a cost-of-living crisis exacerbated by inflation rates exceeding 32% in 2024. Many subscribers, feeling the pinch, initially scaled back on data usage. Despite these challenges, the record-breaking usage in May underscores the critical role of the internet in the nation’s growing digital economy. Telecom giants like MTN Nigeria and Airtel Nigeria, which control over 80% of the market, have reported significant financial gains despite the initial dip in usage. MTN, with 90.49 million subscribers, recorded ₦529.44 billion in data revenue in Q1 2025, while Airtel, with 58.57 million subscribers, reported ₦208.50 billion. Karl Toriola, CEO of MTN Nigeria, attributed this to “strong demand for data and a proactive approach to customer value management,” noting that the tariff adjustments are expected to bolster revenue further in the coming quarters.

Despite the financial windfall for operators, the tariff hike has not yet translated into improved service quality, a key promise made by the NCC. Consumers continue to report frequent outages, with 89 major disruptions recorded between January 1 and May 19, 2025, largely due to fibre vandalism and roadworks. “Only improved service quality will justify the price hike,” said Adeolu Ogunbanjo, president of the National Association of Telecoms Subscribers (NATCOMS), echoing widespread frustration over persistent network issues. The NCC and industry leaders have emphasised that investments in infrastructure are underway. MTN plans to invest nearly ₦900 billion in network expansion this year, with ₦202.4 billion already spent in Q1. Aminu Maida, NCC’s executive vice chairman, highlighted a planned ₦1.59 trillion investment by operators to enhance connectivity. However, experts warn that without addressing vandalism and operational challenges, service quality may continue to suffer.

While internet usage has soared, Nigeria’s broadband penetration remains at 48.15% as of April 2025, falling short of the National Broadband Plan’s 70% target for 2025. High costs and infrastructure gaps, particularly in rural areas, continue to exclude millions from digital access. 120 million Nigerians remain disconnected from mobile internet, despite coverage availability. The high cost of smartphones and data plans, coupled with inflation-eroding purchasing power, exacerbates this divide. “Smartphones have become the computer for many Nigerians today,” said Adia Sowho, former chief marketing officer of MTN Nigeria. Yet, with smartphone penetration at just 26% in rural areas compared to 59% in urban centres, affordability remains a barrier. The World Bank notes that improved internet access over the past three years has reduced extreme poverty by 7%, but rising data costs threaten to slow this progress.

The surge in internet usage reflects Nigeria’s youthful population and growing digital economy, driven by trends like streaming, e-commerce, and remote work. However, the tension between affordability and industry sustainability remains a critical challenge. The record-breaking internet usage in May 2025, despite the 50% tariff hike, underscores the essential role of digital connectivity in Nigeria’s economic landscape. As the nation continues to adapt to the new pricing, the focus will be on balancing the need for revenue growth with the imperative to improve service quality and bridge the digital divide. The investments planned by telecom operators and the NCC’s commitment to infrastructure development are crucial steps in this direction, but addressing operational challenges and ensuring affordability will be key to sustaining this growth.